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TMI Blog2018 (5) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceedings for the A.Y under consideration the AO held that the assessee is not entitled to seek benefit u/s.80IE of the Act taking into consideration the assessment order for A.Y 2010-11 being initial Assessment Year, wherein it was held no substantial expansion has been taken as per section 80IE of the Act and denied the claim of deduction u/s. 80IE of the Act. 4. The CIT-A following the earlier order of his predecessor in assessee's own case passed for the A.Y 2010-11 allowed the claim of deduction by stating as under :- I have considered the submissions of the authorized representative of the appellant as well as the assessment order framed in the light of the materials available on record before the assessing officer durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , copy of the same is on record and referred to paras 9,10 & 11 of the said order and argued that the issue in hand is covered in favor of assessee by the order dt. 19-11- 2018 in assessee's own case for the A.Y 2010-11 in ITA No. 665/Kol/2015 and submits the assessee is also entitled to claim deduction u/s. 80IE of the Act for the subsequent A.Ys and prayed to dismiss the grounds of appeal raised by the revenue. 6. Heard both the parties and perused the record. We find that the A.Y 2010-11 is held to be initial assessment year and the Co-ordinate Bench of this Tribunal held that the assessee is entitled to get deduction at 100% u/s. 80IE of the Act. Relevant portion of the order dt. 19-01-2018 in assessee's own case for the A.Y 2010-11 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the machineries shown under the head "Farm Account" were relevant and the second stage was the manufacturing of Tea from the Grown Green Tea Leaves where the machineries other than those shown under the head "Farm Account" had been utilized. The AR's submission, that if one assessee manufactures Tea from Green Tea Leaves purchased from the market and another assessee manufactures Tea from its own Green Tea Leaves, both the assessees are eligible for deduction u s. T In re a Ion to the profit arising from the manufacturing process, lends support to t e appellant's claim that growing and manufacturing are two different independent processes. Further the provisions of Rule 8 of Income Tax Rules, 1962 providing the bifurcation of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the appellant should be allowed deduction of Rs. 26,10,851 u/s. 80lE. Ground No. 8 of the appeal, in view of the discussion at Para 9.4, 9.5 & 9.6 is allowed." 10. Before us, the Ld. DR submits that the water supply system and irrigation system is the prime requirement without there being any such system the assessee cannot grow tea in its gardens. The said irrigation and water supply system also forms part of plant and machinery. The value of said systems should be considered for the purpose valuations of the machineries utilized for manufacturing of tea. The Ld. DR supported the view taken by the AO and prayed to allow the ground raised in this regard. The Ld. AR submits that there are two processes in tea business i.e one is grow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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